When the Bike Commuter Benefit Act passed back in October, it was somewhat of a shallow victory for advocates who had pushed for its passage for seven long years. Not only did it pass as a ploy to build support for the controversial financial bailout bill, the "benefit" it provides is small ($20 per month compared to $230 for parking a car and $120 a month for taking transit), and the implementation has been the source of massive confusion to HR people across the country. Worse yet, the Bike Commuter Benefit Act included language that required bike riding employees to choose between the bike benefit or the transit benefit.

Now, Congressman Earl Blumenauer has introduced a resolution (H.R. 863) called the Multimodal Commuter Credit that he hopes will clean up the existing law.

The new legislation will allow employees to receive a combination of the bike and transit benefits up to the currently monetary cap of the transit benefit. The legislation also will allow employers to administer the benefit exactly the way existing fringe benefits are administered, thereby clearing up much of the confusion over implementation of the current bike commuter benefit.

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Blumenauer announced the legislation at this morning's kickoff of the Capitol Hill lobbying day here at the National Bike Summit.

According to a one-pager about the new resolution, Blumenauer's office says that the language to allow combining of transit and bike benefits is needed because many commuters "use multiple forms of transportation in their journeys," and that, by allowing employees to choose only one commuter benefit to use, "the program does not currently recognize these realities."

Here's more about the proposed legislation from Blumenauer's office (emphasis mine):

"According to the Bureau of Transportation Statistics, bicycles are second only to cars as a preferred form of transportation, and ahead of public transportation, however many bike commuters may not be able to ride every day because of inclement weather. Alternatively, many commuters need to bike a short distance before reaching a transit station. This legislation recognizes that employees should be able to structure their commute benefit to match the practices they use to get to work."

If passed, the Multimodal Commuter Credit (which its authors describe as being "smarter", and "more flexible") would amend the IRS code to receive transportation "fringe benefits" for the same month both in the form of transit passes and reimbursement of bike commuting expenses.

Essentially, this resolution is a clean-up measure meant to correct errors made when the Bike Commuter Act was first passed. I asked Blumenauer's bike policy staffer Tyler Frisbee why it couldn't have been done right the first time.

Frisbee said the reason is that it was passed as part of the financial bailout package, "instead of a more orderly process."

It seems like what Blumenauer is doing here is fixing errors made by the committee that rushed it into the financial bailout package without full knowledge of how it should be administered. In addition to cleaning up the existing law, perhaps this is Blumenauer wanting to put his name on a bill that he worked so hard to pass, only to have it finally get through on a larger bill that he actually voted against.

Perhaps this resolution should be known as the Blumenauer Amendment.

This story is part of our special 2009 National Bike Summit coverage (sponsored by Planet Bike). For more coverage, follow BikePortland on Twitter and browse the latest photos in our Bike Summit photo gallery.

After news broke about the passage of the bike commuter tax provision in the recent financial bailout bill, many commenters had questions about how it would work.

To help answer those questions, the League of American Bicyclists has published a list of Frequently Asked Questions. I've pasted excerpts from each question below:

When does the bill become effective?

Effective Date �Tax year beginning January 1, 2009

I am a bicycle commuter: how and where do I apply?

...the bicycle commuter provision is a fringe benefit, so your employer will still have to set up a process to administer the benefit that works for your organization.

How does the program work?

The original intent was that an employer could now provide up to $20 a month in incentives related to an employee's bike commuting, to include, but not limited to, bike parking facilities, shower facilities, and maintenance then deduct that amount from their taxable income...

Why was the bicycle commuter act part of the financial rescue package?

The bike provision was part of a larger Renewable Energy Tax Credit Initiatives legislation. Varying versions had passed both the House and Senate but the two houses were unable to compromise on one version.

The Senate strategically attached a number of provisions to the Financial Rescue Package to ensure their passage before recess...

If I put my bike on a bus/train for part of my commute, can I still get the benefit?

At this time, the language would preclude one from obtaining both a transit pass benefit and a bicycle commuting benefit...

Who made this happen?

Congressman Earl Blumenauer (D-OR) and Senator Ron Wyden (D-OR)...

See the full answers at BikeLeague.org.

What a long, strange trip it's been for Congressman Earl Blumenauer and his Bike Commuter Act.

The House Democrat is a former City Commissioner of Transportation in Portland (1987-96) and he was at the helm during Portland's Golden Age of biking -- a time when we laid down much of our bikeway network infrastructure that is now the envy of many cities.

Blumenauer carried his commitment to biking into the halls of Congress and has worked the system relentlessly to pass bike-friendly legislation like the bike commuter tax benefit. Calling it a "matter of equity", his idea is simple; give bike commuters the same respect and recognition in the tax code already given to folks that drive and take public transit.

This morning, the House voted to pass a controversial, $700 billion bailout package for Wall Street (263-171). In order to assure passage in the House (they rejected the bill the first time around), the Senate included a large package of "tax extenders" into the bill that they passed earlier this week. Among the tax breaks was the bike commuter provision.

So, after seven years of toil, Blumenauer's Bike Commuter Act is finally going to become part of the U.S. tax code, and because of the way Washington politics works, he was forced (by his conscience) to vote against it.

It's too bad that it had to happen this way.

Not only is it part of a bill that many folks still think is a sham (another Oregon Democrat and ardent supporter of bicycling, Peter DeFazio, also voted "no"), but because it passed along with a host of other "special interest" tax breaks that had absolutely no connection to the accompanying bill, it will likely only add to the perception that the biking issue is just a silly piece of pork.

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-- For full coverage of the efforts to pass the Bike Commuter Act, see the BikePortland.org archives.

UPDATES:
-- Here's an excerpt from a statement about his "no" vote just posted by Blumenauer:

"...There are some extremely important provisions in the bill for which I have fought during the past two years. For example, the bill extends the production tax credit for wind energy and investment tax credit for solar energy. It includes legislation I drafted to provide a tax credit for the purchase of small wind turbines. And it provides tax fairness so employers can offer the same transportation fringe benefits for bicyclists that they offer to employees who commute by car and public transit.

...The bad news is that, at a time when our national debt is at its highest point in over 50 years as a percentage of GDP, Senate Republicans chose not to pay for most of the good things in this bill. I�m disappointed that the Senate also added a number of provisions to the bill that will provide incentives for coal-to-liquids and oil-shale fuels, which take us in the wrong direction in our battle against climate change...

I will continue to fight to deal with the consequences of added debt and poor energy investment choices..."

Hoping to garner votes from House members who previously voted "no" on the $700 billion financial bailout package, the U.S. Senate has added several sweeteners to the bill (now known as the "Emergency Economic Stabilization Act of 2008").

Among those enhancements (according to this article in the Baltimore Sun) is the Bike Commuter Act, a piece of legislation championed by Rep. Earl Blumenauer for many years. Blumenauer voted "no" on the bailout on Monday and the move by the Senate is being done in hopes to turn that into a "yes".

(See below for full text of the bike commuter benefit portion of the bill.)

The Bike Commuter Act most recently passed the House and Senate as part of the Energy and Tax Extenders Act of 2008 (H.R. 6049). However, according to Blumenauer staffer Katie Drennan, that bill is currently bogged down as lawmakers figure out how to pay for it and try to reach compromises on amendments.

Drennan says Blumenauer had nothing to do with the Bike Commuter Act being added into the bailout bill.

Regardless of how it ended up here, it puts Blumenauer in an interesting political position. If he sticks to his guns and votes "no" on the bailout (like he did on Monday), he might be passing up the best chance his Bike Commuter Act has ever had.

As for whether or not the Bike Commuter Act provision will sway Blumenauer's vote; Drennan was cautious and told me this morning that, "I don't know if that will influence how he votes."

The House is set to vote on the bailout package on Friday.

[Thanks to reader Darren P. for the heads up on this.]

[UPDATES:
1:52pm: Here's the most recent statement from Congressman Blumenauer:

"I continue to think that we need more protections for taxpayer and bankruptcy fairness which will do more to stop the free fall than anything else.

Obviously, this is a dynamic economic situation and many things are in play. I am listening carefully and closely monitoring the situation.

Knowing what I know now in terms of our economic situation and with this bill in its current form, absent some dramatic change in circumstances, I have no plans to support the bailout legislation."

====

1:45pm: Katie Drennan from Blumenauer's office just left this comment:

"I just want to clarify that the inclusion of the tax extenders bill, adopted by the Senate, was not added in due to any negotiations on the part of Congressman Blumenauer. The legislation is far reaching and includes incentives for many types of alternative energy, as well as revising the Alternative Minimum Tax. There are many good provisions in the legislation, which is why the House has passed it on numerous occasions. However the decision of the Senate to include these provisions in their legislation was not at the behest of the Congressman. Thank you for allowing me to clarify."

Here's the full text of the bike commuter benefit portion of the bill (link):

SEC. 211. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.

(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

This morning's Gresham Outlook newspaper has a story about new legislation that has been drafted by Oregon State Rep. John Lim (R-Gresham) that would give a tax break to bike commuters.

According to the Outlook, the current draft language of the bill says,

"a taxpayer who rides a bicycle to work at least 10 days a month could receive a $15 tax credit per month that would be applied to their personal income tax. A business could claim up to a $5,000 corporate tax credit for installing bicycle racks and showers for their employees who commute by bicycle."

Ride your bike, get a break.
(Photo � J. Maus)

Lim told the Outlook, that, "It�s one tool to address traffic conditions in an environmentally-friendly way, and it�s a healthy alternative."

At this point, Lim says the bike commuter tax breaks would be introduced as a pilot program to be adopted by cities, not a statewide law.

The Outlook reports that one other detail being considered is that to qualify, you'd have to ride to work at least 10 days a month.

The Oregon Legislature convenes in January 2009 and Lim is reportedly set to begin committee and public hearings before then so that "details can be worked out with state transportation and tax agencies."

I've got a call into Lim's office, but have yet to hear back.

On the national level, the latest iteration of Congressman Earl Blumenauer's Bike Commuter Act is currently part of the Energy and Tax Extenders Act of 2008 (H.R. 6049). The bill has passed the House and the Senate (as of last week, by a vote of 93-2) and is now back in the House for a last review of amendments before it heads to the President's desk for signing.

-- Read the full story in the Gresham Outlook; Legislation would create tax credits for bicycle commuters

"I think it's the best chance the Bike Commuter Act has had so far in the Senate."
-- Katie Drennan, a legislative assistant for Congressman Earl Blumenauer

For the fourth time this session, the U.S. House of Representatives has passed a bill that includes a tax benefit people who ride their bikes to work.

The Bike Commuter Act has taken many forms and has been a part of several different pieces of legislation over the years. Amazingly, even though the legislation seeks only to offer the same benefits to those who bike to work as those who drive or take transit, it has been ridiculed (remember Patrick McHenry?) and has lacked support for being too expensive (that's what Oregon Senator Gordon Smith thought in May 2006) among other things.

At one point in April of 2007, Blumenauer's office was concerned that allegations of fraud leveled at other components of the existing transportation tax benefit program (like people selling unused transit passes on Craigslist) would taint support of the bike commuter benefit.

It has been a roller-coaster battle to say the least.

Currently, the the bike commuter benefit is part of several provisions introduced by Congressman Earl Blumenauer (D-OR) that are included in the Energy Bill (or HR 6899; The Comprehensive Energy Security & Consumer Protection Act) that's being debated in Congress this week.

As it stands now, Section 827 of the Energy Bill (titled the "Transportation Fringe Benefit to Bicycle Commuters") states that employers would be able to provide $20 per month in pre-tax benefits as long as the employee used their bike "for a substantial portion of the travel between the employee's residence and place of employment". The money could be used for, "the purchase of a bicycle and bicycle improvements, repair, and storage". The estimated cost is $10 million over 10 years.

The Bill passed through the House last night with a vote of 236-189 and is expected to be voted on by the Senate tomorrow or Friday (9/19).

One of Blumenauer's legislative assistants, Katie Drennan, told me this morning that she's cautiously optimistic. "I think it's the best chance the Bike Commuter Act has had so far in the Senate," but she added, "it is by no means a done deal."

Conventional wisdom in on The Hill is that the Energy Bill is far from a sure thing in the Senate. And, even it if it does pass, the President has already threatened a veto.

"We’re crossing our fingers on passage," says Drennan, "but its fate is really up in the air."

-- The League of American Bicyclists has sent out an Action Alert to encourage folks to contact their Senators about the bill.

-- For previous coverage of the Bike Commuter Act, see the BikePortland.org archives.

House Congressional Resolution 305, also known as the National Bike Bill, has passed through a vote by the U.S. House of Representatives earlier this week.

The resolution -- which was introduced by Congressman Earl Blumenauer (D-OR) back in February -- recognizes the importance of bicycling to "enriching the nation’s health, reducing traffic congestion and greenhouse gas emissions, and improving America’s economic vitality and overall quality of life."

A statement released from Blumenauer's office (which incidentally referred to it as the "Blumenauer Bike Resolution"), shared why this piece of legislation is so important (emphasis mine).

"H. Con. Res. 305 documents more than twenty specific, quantifiable benefits that bicycling brings to cyclists, motorists and pedestrians alike. It calls on Congress to establish national target levels for increased bicycle use and intermodal travel. The National Bike Bill supports providing federal incentives for adoption of State and local “complete streets” policies, expanding funding for Federal transportation programs that support non-motorized infrastructure and safety enhancements, as well as developing coordinated interstate bicycle routes and bike-friendly land protections, and much more. Lastly, the legislation re-establishes the Interagency Bicycle Task Force, launched after the 1994 report to Congress."

As a "Concurrent Resolution" the bill must also pass the Senate, but it does not need the president's signature.

Unfortunately, according to Blumenauer staffers, at this point the bill does not have a Senate sponsor. A natural champion to introduce the bill would be the leader of the 17 member Senate Bike Caucus, but that group has been without any leadership since Senator Kay Bailey Hutchison (R-TX) stepped down.

Meeky Blizzard, who works in Blumenauer's Portland office says Senator Olympia Snowe (R-ME) has recently agreed to chair the Senate Bike Caucus but she has not stepped forward yet.

In other national bike legislation news, the extension of the transportation fringe tax benefit to bike commuters passed the House last month. The bike commuter benefit is now part of the Renewable Energy & Energy Conservation Tax Act of 2008 (H.R. 5351). It is also slated for a vote in the Senate.

Stay tuned for updates on both of these important pieces of legislation.

EARL BLUMENAUER

February 27, 2008
FOR IMMEDIATE RELEASE Contact: Erin Allweiss

Blumenauer Votes to End Subsidies for Big Oil, Supports Renewable Energy
Bill Passes House with Four Blumenauer Provisions

Washington, D.C. – Today Congressman Earl Blumenauer (D-Ore) joined a majority of the House to pass the Renewable Energy and Energy Conservation Tax Act of 2008, H.R.5351. The bill contains four provisions introduced by Rep. Blumenauer: closing the Hummer tax loophole, providing an investment tax credit for small wind turbines, offering a benefit to bike commuters, and conducting a carbon audit of the U.S. Tax Code.

“There is no reason Congress should subsidize the five biggest oil companies, which reaped record profits this year, while Americans pay top dollar at the pump,” said Congressman Blumenauer. “What we need is to invest in the energy technologies of tomorrow, and this bill does just that by shifting subsidies to gas and oil companies over to renewable energy initiatives and incentives. No longer are we providing tax breaks to those who buy the least efficient vehicles, like Hummers, or subsidizing the energy technologies of yesterday. Instead we are investing in clean energy solutions that will create jobs, decrease our reliance on foreign oil, and reduce our greenhouse gas emissions.”

The Renewable Energy and Energy Conservation Tax Act makes key investments in the energy sources of the future and includes important tax credits to promote renewable energy production from wind, solar, geothermal, and other sources, many of which are set to expire at the end of the year. For example, the bill extends the wind energy production tax credit for three years.

The legislation repeals $18 billion in unnecessary tax subsidies for big, multinational oil and gas companies. The vote comes shortly after the big five oil companies recently reported record profits for 2007, with ExxonMobil earning $40.6 billion - the largest corporate profit in American history.

H.R. 5351 includes the following provisions introduced by Congressman Blumenauer:

Closing the Hummer Tax Loophole would fix a serious mistake in the tax code that provides an additional tax incentive for business purchases of luxury SUVs weighing over 6,000 lbs. Originally intended to help businesses buy necessary heavy-duty work vehicles, the “Hummer Tax Loophole” has for years allowed write-offs of anywhere from $100,000 to the current figure of $25,000 for the purchase of the largest, most gas-guzzling luxury SUVs, even as concerns over gas prices and dependence on oil have grown. The change offered in the Ways and Means energy bill would not affect legitimate business investments in trucks or vans, such as plumber and contractor trucks, farm vehicles, construction vehicles, flatbed trucks, cement mixers, and a variety of other vehicles as designated by the IRS. The provision is based on H.R. 2715, legislation introduced by Blumenauer earlier this year.

An Investment Tax Credit for Small Wind Turbines offers an incentive for homeowners, farmers, and businesses to install wind turbines. This not only provides clean energy, but it generates added income. It is pro environment, pro business, and a smart way to diversify income. Specifically, the bill provides a tax credit of 30% of the cost of purchasing a small wind turbine. A single turbine can provide up to an additional $2,000-$4,000/year in farm income.

The Carbon Audit of the United States Tax Code by the National Academy of Sciences would involve a review of the tax code to identify those tax provisions and policies that have the greatest influence on the generation of carbon emissions and other greenhouse gases and to estimate the magnitude of those effects. The study would evaluate the potential for changes in the tax code to reduce carbon emissions. The study will examine areas where the connection between the tax code and carbon emissions are obvious (e.g., energy taxation) and will consider areas where the connection between the tax code and carbon emissions may be less obvious (e.g., tax policies affecting urban development, which affect climate through travel demand and land-use change).

The Commuter Benefit for bikers amends section 132(f) of the IRS code to include "bicycles" in the definition of transportation covered by fringe benefits. Included in the Ways and Means energy bill is a benefit of $20/month for those employees who bike to work, which is a clean, healthy and efficient mode of transportation. The provision is based on H.R. 1498, legislation introduced by Blumenauer earlier this year.

On the heels of record profits by the big five oil companies, U.S. Congressman Earl Blumenauer (D-Portland) will once again try to enact a tax benefit for bike commuters and close the "Hummer tax loophole."

The bike commuter tax benefit (a.k.a. the Bike Commuter Act and the Conserve By Bike provision) would amend the IRS code to include "bicycles" in the definition of transportation covered by fringe benefits. The Hummer tax loophole would fix what Blumenauer refers to as "a serious mistake" in the tax code that provides an additional tax break for business purchases of luxury SUVs weighing over 6,000 lbs.

According to a statement from Blumenauer's office announcing vote, several weeks ago Exxon Mobil reported earning $40.6 billion in 2007 -- the largest corporate profit in American history -- equal to $132 for every U.S. resident (or $1,287 of profit for every second of 2007).

The bike commuter and Hummer loophole provisions are two of four provisions introduced by Blumenauer that are part of the Renewable Energy and Energy Conservation Tax Act (H.R.5351) that the House will vote on tomorrow.

Both provisions were part of an Energy Plan that passed the House back in August, but were later stripped by the Senate before passage of the Plan.

Read my previous coverage of the Bike Commuter Act in my Special Coverage section.

UPDATE: The Act, with these two provisions, passed the House today. Now it's onto the Senate and eventually the White House (where Bush has threatened to veto it.)

The bike commuter tax benefit -- which was introduced to Congress by Earl Blumenauer last March and passed a House vote last week -- has been stripped out of the Energy Bill by the Senate.

The U.S. Senate passed the Energy Bill yesterday, but not before removing several "green initiatives" included in the bill by the Blumenauer-led Ways and Means Committee.

Along with removing Blumenauer's effort to close the "Hummer tax loophole" (which sought to end the additional tax incentive for business purchases of luxury SUVs weighing over 6,000 lbs), the Senate removed the part of the bill that would have expanded the existing transportation fringe benefit to include bike commuters.

The bike commuter provision was based on The Bike Commuter Act and would have given a benefit of $20 per month to employees who biked to work "for the purchase, storage, or repair" of their bicycles. It would have brought bike commuters in line with existing tax benefits for transit users and car drivers.

Addressing National Bike Summit attendees on Capitol Hill last March, Blumenauer said the bike commuter benefit was simply a matter of equity and it would have stopped, "The discrimination against people who burn calories instead of fuel."

Based on news reports, it seems the Democrats opted to agree to remove several provisions in the Bill in order to avoid a Republican filibuster.

Meeky Blizzard, who works in Blumenauer's Portland office told me today that, "The House Leadership is committed to bringing the tax portions of the bill back in another form early next year, and I’m sure Earl will be working to make sure that the bike commute benefit is in there."

The bill will now go back to the House for approval (Blizzard says it will pass as-is) and the White House is expected to sign the bill into law.

Here's a little bonus audio from Rep. John Boehner (R-Ohio) taking a pot-shot at the bike commuter provision of the "Pork laden" Energy Bill. (I recorded this from a YouTube video of comments he made on the House Floor on December 6th.)
Download audio file (boehnerEnergyBill.mp3)